Energy Independence and Security Act of 2007/Title VII/Subtitle A

by United States Congress

Subtitle A--Carbon Capture and Sequestration Research, Development, and Demonstration

SEC. 701. SHORT TITLE.

This subtitle may be cited as the ``Department of Energy Carbon Capture and Sequestration Research, Development, and Demonstration Act of 2007´´.

SEC. 702. CARBON CAPTURE AND SEQUESTRATION RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM.

(a) Amendment- Section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is amended--

(1) in the section heading, by striking `research and development' and inserting `and sequestration research, development, and demonstration';

(2) in subsection (a)--

(A) by striking `research and development' and inserting `and sequestration research, development, and demonstration'; and

(B) by striking `capture technologies on combustion-based systems' and inserting `capture and sequestration technologies related to industrial sources of carbon dioxide';

(3) in subsection (b)--

(A) in paragraph (3), by striking `and' at the end;

(B) in paragraph (4), by striking the period at the end and inserting `; and'; and

(C) by adding at the end the following:

`(5) to expedite and carry out large-scale testing of carbon sequestration systems in a range of geologic formations that will provide information on the cost and feasibility of deployment of sequestration technologies.'; and

(4) by striking subsection (c) and inserting the following:

`(c) Programmatic Activities-

`(1) FUNDAMENTAL SCIENCE AND ENGINEERING RESEARCH AND DEVELOPMENT AND DEMONSTRATION SUPPORTING CARBON CAPTURE AND SEQUESTRATION TECHNOLOGIES AND CARBON USE ACTIVITIES-

`(A) IN GENERAL- The Secretary shall carry out fundamental science and engineering research (including laboratory-scale experiments, numeric modeling, and simulations) to develop and document the performance of new approaches to capture and sequester, or use carbon dioxide to lead to an overall reduction of carbon dioxide emissions.

`(B) PROGRAM INTEGRATION- The Secretary shall ensure that fundamental research carried out under this paragraph is appropriately applied to energy technology development activities, the field testing of carbon sequestration, and carbon use activities, including--

`(i) development of new or advanced technologies for the capture and sequestration of carbon dioxide;

`(ii) development of new or advanced technologies that reduce the cost and increase the efficacy of advanced compression of carbon dioxide required for the sequestration of carbon dioxide;

`(iii) modeling and simulation of geologic sequestration field demonstrations;

`(iv) quantitative assessment of risks relating to specific field sites for testing of sequestration technologies;

`(v) research and development of new and advanced technologies for carbon use, including recycling and reuse of carbon dioxide; and

`(vi) research and development of new and advanced technologies for the separation of oxygen from air.

`(2) FIELD VALIDATION TESTING ACTIVITIES-

`(A) IN GENERAL- The Secretary shall promote, to the maximum extent practicable, regional carbon sequestration partnerships to conduct geologic sequestration tests involving carbon dioxide injection and monitoring, mitigation, and verification operations in a variety of candidate geologic settings, including--

`(i) operating oil and gas fields;

`(ii) depleted oil and gas fields;

`(iii) unmineable coal seams;

`(iv) deep saline formations;

`(v) deep geologic systems that may be used as engineered reservoirs to extract economical quantities of heat from geothermal resources of low permeability or porosity; and

`(vi) deep geologic systems containing basalt formations.

`(B) OBJECTIVES- The objectives of tests conducted under this paragraph shall be--

`(i) to develop and validate geophysical tools, analysis, and modeling to monitor, predict, and verify carbon dioxide containment;

`(ii) to validate modeling of geologic formations;

`(iii) to refine sequestration capacity estimated for particular geologic formations;

`(iv) to determine the fate of carbon dioxide concurrent with and following injection into geologic formations;

`(v) to develop and implement best practices for operations relating to, and monitoring of, carbon dioxide injection and sequestration in geologic formations;

`(vi) to assess and ensure the safety of operations related to geologic sequestration of carbon dioxide;

`(vii) to allow the Secretary to promulgate policies, procedures, requirements, and guidance to ensure that the objectives of this subparagraph are met in large-scale testing and deployment activities for carbon capture and sequestration that are funded by the Department of Energy; and

`(viii) to provide information to States, the Environmental Protection Agency, and other appropriate entities to support development of a regulatory framework for commercial-scale sequestration operations that ensure the protection of human health and the environment.

`(3) LARGE-SCALE CARBON DIOXIDE SEQUESTRATION TESTING-

`(A) IN GENERAL- The Secretary shall conduct not less than 7 initial large-scale sequestration tests, not including the FutureGen project, for geologic containment of carbon dioxide to collect and validate information on the cost and feasibility of commercial deployment of technologies for geologic containment of carbon dioxide. These 7 tests may include any Regional Partnership projects awarded as of the date of enactment of the Department of Energy Carbon Capture and Sequestration Research, Development, and Demonstration Act of 2007.

`(B) DIVERSITY OF FORMATIONS TO BE STUDIED- In selecting formations for study under this paragraph, the Secretary shall consider a variety of geologic formations across the United States, and require characterization and modeling of candidate formations, as determined by the Secretary.

`(C) SOURCE OF CARBON DIOXIDE FOR LARGE-SCALE SEQUESTRATION TESTS- In the process of any acquisition of carbon dioxide for sequestration tests under subparagraph (A), the Secretary shall give preference to sources of carbon dioxide from industrial sources. To the extent feasible, the Secretary shall prefer tests that would facilitate the creation of an integrated system of capture, transportation and sequestration of carbon dioxide. The preference provided for under this subparagraph shall not delay the implementation of the large-scale sequestration tests under this paragraph.

`(D) DEFINITION- For purposes of this paragraph, the term `large-scale' means the injection of more than 1,000,000 tons of carbon dioxide from industrial sources annually or a scale that demonstrates the ability to inject and sequester several million metric tons of industrial source carbon dioxide for a large number of years.

`(4) PREFERENCE IN PROJECT SELECTION FROM MERITORIOUS PROPOSALS- In making competitive awards under this subsection, subject to the requirements of section 989, the Secretary shall--

`(A) give preference to proposals from partnerships among industrial, academic, and government entities; and

`(B) require recipients to provide assurances that all laborers and mechanics employed by contractors and subcontractors in the construction, repair, or alteration of new or existing facilities performed in order to carry out a demonstration or commercial application activity authorized under this subsection shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code, and the Secretary of Labor shall, with respect to the labor standards in this paragraph, have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C. Appendix) and section 3145 of title 40, United States Code.

`(5) COST SHARING- Activities under this subsection shall be considered research and development activities that are subject to the cost sharing requirements of section 988(b).

`(6) PROGRAM REVIEW AND REPORT- During fiscal year 2011, the Secretary shall--

`(A) conduct a review of programmatic activities carried out under this subsection; and

`(B) make recommendations with respect to continuation of the activities.

`(d) Authorization of Appropriations- There are authorized to be appropriated to carry out this section--

`(1) $240,000,000 for fiscal year 2008;

`(2) $240,000,000 for fiscal year 2009;

`(3) $240,000,000 for fiscal year 2010;

`(4) $240,000,000 for fiscal year 2011; and

`(5) $240,000,000 for fiscal year 2012.'.

(b) Table of Contents Amendment- The item relating to section 963 in the table of contents for the Energy Policy Act of 2005 is amended to read as follows:

`Sec. 963. Carbon capture and sequestration research, development, and demonstration program.'.

SEC. 703. CARBON CAPTURE.

(a) Program Establishment-

(1) IN GENERAL- The Secretary shall carry out a program to demonstrate technologies for the large-scale capture of carbon dioxide from industrial sources. In making awards under this program, the Secretary shall select, as appropriate, a diversity of capture technologies to address the need to capture carbon dioxide from a range of industrial sources.

(2) SCOPE OF AWARD- Awards under this section shall be only for the portion of the project that--

(A) carries out the large-scale capture (including purification and compression) of carbon dioxide from industrial sources;

(B) provides for the transportation and injection of carbon dioxide; and

(C) incorporates a comprehensive measurement, monitoring, and validation program.

(3) PREFERENCES FOR AWARD- To ensure reduced carbon dioxide emissions, the Secretary shall take necessary actions to provide for the integration of the program under this paragraph with the large-scale carbon dioxide sequestration tests described in section 963(c)(3) of the Energy Policy Act of 2005 (42 U.S.C. 16293(c)(3)), as added by section 702 of this subtitle. These actions should not delay implementation of these tests. The Secretary shall give priority consideration to projects with the following characteristics:

(A) CAPACITY- Projects that will capture a high percentage of the carbon dioxide in the treated stream and large volumes of carbon dioxide as determined by the Secretary.

(B) SEQUESTRATION- Projects that capture carbon dioxide from industrial sources that are near suitable geological reservoirs and could continue sequestration including--

(i) a field testing validation activity under section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293), as amended by this Act; or

(ii) other geologic sequestration projects approved by the Secretary.

(4) REQUIREMENT- For projects that generate carbon dioxide that is to be sequestered, the carbon dioxide stream shall be of a sufficient purity level to allow for safe transport and sequestration.

(5) COST-SHARING- The cost-sharing requirements of section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) for research and development projects shall apply to this section.

(b) Authorization of Appropriations- There is authorized to be appropriated to the Secretary to carry out this section $200,000,000 per year for fiscal years 2009 through 2013.

SEC. 704. REVIEW OF LARGE-SCALE PROGRAMS.

The Secretary shall enter into an arrangement with the National Academy of Sciences for an independent review and oversight, beginning in 2011, of the programs under section 963(c)(3) of the Energy Policy Act of 2005 (42 U.S.C. 16293(c)(3)), as added by section 702 of this subtitle, and under section 703 of this subtitle, to ensure that the benefits of such programs are maximized. Not later than January 1, 2012, the Secretary shall transmit to the Congress a report on the results of such review and oversight.

SEC. 705. GEOLOGIC SEQUESTRATION TRAINING AND RESEARCH.

(a) Study-

(1) IN GENERAL- The Secretary shall enter into an arrangement with the National Academy of Sciences to undertake a study that--

(A) defines an interdisciplinary program in geology, engineering, hydrology, environmental science, and related disciplines that will support the Nation's capability to capture and sequester carbon dioxide from anthropogenic sources;

(B) addresses undergraduate and graduate education, especially to help develop graduate level programs of research and instruction that lead to advanced degrees with emphasis on geologic sequestration science;

(C) develops guidelines for proposals from colleges and universities with substantial capabilities in the required disciplines that seek to implement geologic sequestration science programs that advance the Nation's capacity to address carbon management through geologic sequestration science; and

(D) outlines a budget and recommendations for how much funding will be necessary to establish and carry out the grant program under subsection (b).

(2) REPORT- Not later than 1 year after the date of enactment of this Act, the Secretary shall transmit to the Congress a copy of the results of the study provided by the National Academy of Sciences under paragraph (1).

(3) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary for carrying out this subsection $1,000,000 for fiscal year 2008.

(b) Grant Program-

(1) ESTABLISHMENT- The Secretary shall establish a competitive grant program through which colleges and universities may apply for and receive 4-year grants for--

(A) salary and startup costs for newly designated faculty positions in an integrated geologic carbon sequestration science program; and

(B) internships for graduate students in geologic sequestration science.

(2) RENEWAL- Grants under this subsection shall be renewable for up to 2 additional 3-year terms, based on performance criteria, established by the National Academy of Sciences study conducted under subsection (a), that include the number of graduates of such programs.

(3) INTERFACE WITH REGIONAL GEOLOGIC CARBON SEQUESTRATION PARTNERSHIPS- To the greatest extent possible, geologic carbon sequestration science programs supported under this subsection shall interface with the research of the Regional Carbon Sequestration Partnerships operated by the Department to provide internships and practical training in carbon capture and geologic sequestration.

(4) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary for carrying out this subsection such sums as may be necessary.

SEC. 706. RELATION TO SAFE DRINKING WATER ACT.

The injection and geologic sequestration of carbon dioxide pursuant to this subtitle and the amendments made by this subtitle shall be subject to the requirements of the Safe Drinking Water Act (42 U.S.C. 300f et seq.), including the provisions of part C of such Act (42 U.S.C. 300h et seq.; relating to protection of underground sources of drinking water). Nothing in this subtitle and the amendments made by this subtitle imposes or authorizes the promulgation of any requirement that is inconsistent or in conflict with the requirements of the Safe Drinking Water Act (42 U.S.C. 300f et seq.) or regulations thereunder.

SEC. 707. SAFETY RESEARCH.

(a) Program- The Administrator of the Environmental Protection Agency shall conduct a research program to address public health, safety, and environmental impacts that may be associated with capture, injection, and sequestration of greenhouse gases in geologic reservoirs.

(b) Authorization of Appropriations- There are authorized to be appropriated for carrying out this section $5,000,000 for each fiscal year.

SEC. 708. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.

(a) Establishment- The Secretary, in consultation with other appropriate agencies, shall establish a university based research and development program to study carbon capture and sequestration using the various types of coal.

(b) Rural and Agricultural Institutions- The Secretary shall give special consideration to rural or agricultural based institutions in areas that have regional sources of coal and that offer interdisciplinary programs in the area of environmental science to study carbon capture and sequestration.

(c) Authorization of Appropriations- There are to be authorized to be appropriated $10,000,000 to carry out this section.